Suppose you learn that in 1,900, households spent about 40 percent of their budget on food, and today, they spend about 10 percent of their budget of food. All else equal, this suggests that the price elasticity of demand for food:
A. is probably negative.
B. is probably lower now than it was in 1,900.
C. has always been very high.
D. is probably higher now than it was in 1,900.
Answer: B
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Economic analysis and policy are made more difficult by
A. having so much data to work with. B. inadequate and imperfect information. C. an incomplete consensus on the basic goals of social policy. D. the lack of public interest and opinion on economic questions. E. the major economic problems society faces.
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck will sell ________ units and Pushy Sales will sell ________ units.
A. 3,000; 0 B. 3,000; 1,000 C. 2,000; 1,000 D. 0; 3,000
________ functions are very useful in analyzing production functions, which exhibit both increasing and decreasing marginal products
A) Cobb-Douglas B) Straight-line C) Quadratic D) Cubic
Consumer surveys suggest that families with less than $500 in a bank during the last five years confidently anticipate a comfortable retirement
Indicate whether the statement is true or false